A SUMMER TRAINING REPORT

In

HDFC Standard Life Insurance

On

“AWARNESS OF FINANCIAL PLANNING IN EMERGING INDIAN MARKET”

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A)

GURU JAMBHESHWAR UNIVERSITY, HISAR

TRAINING SUPERVISOR SUBMITTED BY:Mr. PRADEEP SHARMA MOHIT AGARWAL(TERRITORY MANAGER) ENROLLMENT NO.

06511243229

SESSION : 2006 - 2009

Directorate of Distance Learning Guru Jambheshwar University of Science and Technology

Hisar (India)

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ACKNOWLEDGEMENT

We take due pleasure to thank all those who have helped & supported us for completion

of this project.

Mr. Pradeep Sharma (Territory Manager) HDFC Standard Life, our Project Guide,

for guiding us throughout our internship which proved to be very essential for our

project.

We are extremely grateful to him for giving me his time and valuable inputs for our

project. His valuable suggestion and guidance proved to be indispensable for the

completion of my project.

I would like to thank Ms. Anju Dwivedi who helped me in making this project. I also

thank to my faculty for their valuable support. I take this opportunity to thank all those

who have directly or indirectly helped me specially JAGANNATH INSTITUE OF

MANAGEMENT SCIENCES who has provided me an opportunity to do my summer

internship in HDFC Standard Life Insurance co.

All the other people at HDFC Standard Life are regarded with great gratitude for their

valuable time and support without which our project would not have been completed.

MOHIT AGARWAL

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CERTIFICATE FROM THE COMPANY

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PREFACE

The purpose of this project is to study the training procedure provided by HDFC Standard

Life Insurance Company Ltd. to Financial Consultant (FC’s) and its Financial Analysis.

It’s been a great experience to work with such an esteemed organization. I am grateful to

my guide Mr. Pradeep Sharma (Territory Manager) for providing me right direction

and sparing his valuable time to discuss on various issues of training procedure &

financial analysis of HDFC Standard Life Insurance Company Ltd.

This project report has been divided into different chapters. viz.

The project work has been a great experience for me in it was a learning process. Earlier I

was unaware of many things regarding to insurance industry. But after working with this

organization, I got the knowledge of insurance apart of my project work.

Throughout the development of the project it has been my own endeavor to tailor like

approach, subject matter & presentation according to the requirements of its readers. The

language has been kept simple and the entire discussion has been built on a logical &

coherent outlines. Thus this project will meet the requirements of its readers.

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SECURITISATION

Future Activities

DISTRIBUTION HDFC CHUBB GENERAL INSURANCE

CO. LTD.

EXECUTIVE SUMMARY

Overall, the life insurance and pension sector is set for rapid changes and growth in the

years ahead. Delivering service, building trust and being innovative are key areas in

which any company will have to excel in order to do well in the long road ahead.

Different companies will take different approaches and it would be myriad of solutions

that will be found to delight the Indian customer.

During the first part, I was given complete classroom training about the various unit

linked as well as the traditional plans and solutions which the company offers.

Later, Market Research was done through various activities and tele-calling which are

discussed further in the report. Activities led to practical exposure and taught me the

aspects of customer dealing.

Finally, interesting conclusions were drawn out of the data collected regarding the

Awareness of Financial Planning among the people in today’s environment.

It was great experience because selling an insurance product demands a great deal

of confidence and product knowledge.

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TABLE OF CONTENTS

Page No.1. Introduction to Industry 01-19

2. Introduction to Company 19-34

3. Research Methodology 35-39

a) Title 36

b) Objectives 36

c) Significance of study 37

d) Research design 37

e) Sampling methodology 38

f) Limitations 39

4. Facts and Findings 40-48

5. Data Analysis and Interpretation 49-63

6. Recommendations 64-65

7. Conclusion 66-69

8. Bibliography 70-71

9. Annexure 72-75

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Overview

With largest number of life insurance policies in force in the world, Insurance happens to

be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent

annually.

Together with banking services, it adds about 7 percent to the country’s GDP .In spite of

all this growth the statistics of the penetration of the insurance in the country is very poor.

Nearly 80 per cent of Indian population is without life insurance cover while health

insurance and non-life insurance continues to be below international standards. And this

part of the population is also subject to weak social security and pension systems with

hardly any old age income security. This it-self is an indicator that growth potential for

the insurance sector is immense.

Historical PerspectiveThe insurance came to India from UK; with the establishment of the Oriental Life

insurance Corporation in 1818.The Indian life insurance company act 1912 was the first

statutory body that started to regulate the life insurance business in India. By 1956 about

154 Indian, 16 foreign and 75 provident firms were been established in India. Then the

central government took over these companies and as a result the LIC was formed. Since

then LIC has worked towards spreading life insurance and building a wide network

across the length and the breath of the country.

Important milestones in the life insurance business in India : 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1956: 245 Indian and foreign insurers and provident societies were taken over by the

central government and nationalized. LIC formed by an Act of Parliament- LIC Act

1956- with a capital contribution of Rs.5 cr. from the Government of India.

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Important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a

code of conduct for ensuring fair conduct and sound business practices.

1972: The general insurance business in India nationalized through The General

Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107

insurers amalgamated and grouped into four companies- the National Insurance Company

Limited, the New India Assurance Company Limited, the Oriental Insurance Company

Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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Insurance Sector Reforms

Prior to liberalization of Insurance industry, Life insurance was

monopoly of LIC.

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor

R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its

future direction. The Malhotra committee was set up with the objective of

complementing the reforms initiated in the financial sector. The reforms were aimed at

creating a more efficient and competitive financial system suitable for the requirements

of the economy keeping in mind the structural changes currently underway and

recognizing that insurance is an important part of the overall financial system where it

was necessary to address the need for similar reforms. In 1994, the committee submitted

the report and some of the key recommendations included:

Structure

Government stake in the insurance Companies to be brought down to 50%. Government

should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act

as independent corporations.

Competition

Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to

enter the sector. No Company should deal in both Life and General Insurance through a

single entity. Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies.

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Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up.

Controller of Insurance- a part of the Finance Ministry- should be made independent

Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company

(there current holdings to be brought down to this level over a period of time)

Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies

must be encouraged to set up unit linked pension plans. Computerization of operations

and updating of technology is to be carried out in the insurance industry.

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STATISTICS (INDIAN & GLOBAL)

This section gives the users important and detailed statistics of the Indian as well as the

Global insurance industry. These statistics would give important insights of where the

respective markets are headed for.

The global life insurance market stands at $1,521.2 billion while the non-life

insurance market is placed at $922.4 billion.

The United States itself accounts for about one-third of the $2443.6 billion global

insurance market and Japan stands next with a 20.62% share.

India takes the 23rd position with US $9.933 billion annual premium collections

and a meager 0.41% share.

Out of one billion people in India, only 35 million people are covered by

insurance.

India's life insurance premium as a percentage of GDP is just 1.77 per cent.

The income derived by GIC and its subsidiary companies through investment was

Rs.2491.76 crore and the investable fund generated was Rs.2843 crore in 1999-

2000.

Indian insurance market is set to touch $25 billion by 2010, on the assumption of

a 7 per cent real annual growth in GDP.

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NATURE OF INDUSTRY

The insurance industry provides protection against financial losses resulting from a

variety of perils. By purchasing insurance policies, individuals and businesses can receive

reimbursement for losses due to car accidents, theft of property, and fire and storm

damage; medical expenses; and loss of income due to disability or death.

The insurance industry consists mainly of insurance carriers (or insurers) and

insurance agencies and brokerages. In general, insurance carriers are large companies

that provide insurance and assume the risks covered by the policy. Insurance agencies

and brokerages sell insurance policies for the carriers.

Insurance companies assume the risk associated with annuities and insurance policies and

assign premiums to be paid for the policies. In the policy, the companies states the length

and conditions of the agreement, exactly which losses it will provide compensation for,

and how much will be awarded.

The premium charged for the policy is based primarily on the amount to be awarded in

case of loss, as well as the likelihood that the insurance carrier will actually have to pay.

In order to be able to compensate policyholders for their losses, insurance companies

invest the money they receive in premiums, building up a portfolio of financial assets and

income-producing real estate, which can then be used to pay off any future claims that

may be brought.

There are two basic types of insurance carriers : Direct and Reinsurance .

Direct carriers are responsible for the initial underwriting of insurance policies and

annuities, while Reinsurance carriers assume all or part of the risk associated with the

existing insurance policies originally underwritten by other insurance carriers.

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Direct insurance carriers offer a variety of insurance policies.

Life insurance provides financial protection to beneficiaries—usually spouses and

dependent children—upon the death of the insured.

Disability insurance supplies a preset income to an insured person who is unable to work

due to injury or illness

Health insurance pays the expenses resulting from accidents and illness.

An Annuity (a contract or a group of contracts that furnishes a periodic income at regular

intervals for a specified period) provides a steady income during retirement for the

remainder of one’s life.

Property-casualty insurance protects against loss or damage to property resulting from

hazards such as fire, theft, and natural disasters.

Liability insurance shields policyholders from financial responsibility for injuries to

others or for damage to other people’s property. Most policies, such as automobile and

homeowner’s insurance, combine both property-casualty and liability coverage.

Companies that underwrite this kind of insurance are called property-casualty carriers.

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What is Life Insurance?

Human life is subject to risks of death and disability due to natural and accidental causes.

When human life is lost or a person is disabled permanently or temporarily, there is a loss

of income to the household. The family is put to hardship. Risks are unpredictable.

Death/disability may occur when one least expects it. There are a number of life

insurance products which offer protection and also coupled with savings.

A Term insurance product provides a fixed amount of money on death during the period

of contract.

A Whole Life insurance product provides a fixed amount of money on death.

An Endowment Assurance product provided a fixed amount of money either on death

during the period of contract or at the expiry of contract if life assured is alive.

A Money Back Assurance product provides not only fixed amounts which are payable

on specified dates during the period of contract, but also the full amount of money

assured on death during the period of contract.

An Annuity product provides a series of monthly payments on stipulated dates provided

that the life assured is alive on the stipulated dates.

A Linked product provides not only a fixed amount of money on death but also sums of

money which are linked with the underlying value of assets on the desired dates.

There are a variety of life insurance products to suit to the needs of various categories of

people—children, youth, women, middle-aged persons, old people; and also rural people,

film actors and unorganized laborers.

Life insurance products could be purchased from registered life insurers notified by the

IRDA. Insurers appoint insurance agents to sell their products.

As per regulations, insurers have to give the various features of the products at the point

of sale. The insured should also go through the various terms and conditions of the

products and understand what they have bought and met their insurance needs. They

ought to understand the claim procedures so that they know what to do in the event of a

loss.

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INDIAN INSURANCE SECTOR

REGULATORY BODYInsurance is a federal subject in India. The primary legislation that deals with insurance

business in India is: Insurance Act, 1938, and Insurance Regulatory & Development

Authority Act, 1999.

The Insurance Regulatory and Development

Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of the

IRDA’s online service for issue and renewal of licenses to agents. Since being set up as

an independent statutory body the IRDA has put in a framework of globally compatible

regulations.

MISSION-IRDA“To protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or

incidental thereto.”

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IMPACT OF LIBERALISATION

The introduction of private players in the industry has added to the colors in the dull

industry. The initiatives taken by the private players are very competitive and have given

immense competition to the on time monopoly of the market LIC. Since the advent of the

private players in the market the industry has seen new and innovative steps taken by the

players in this sector.

The new players have improved the service quality of the insurance. As a result LIC

down the years have seen the declining phase in its career. The market share was

distributed among the private players. Though LIC still holds the 79% of the insurance

sector but the upcoming natures of these private players are enough to give more

competition to LIC in the near future. LIC market share has decreased from 95% (2002-

03) to 81 %( 2004-05).

LIC has the current market share of 79%.

Among the private players ICICI Prudential has the maximum of app. 5.60%

Followed by Bajaj Allianz (3.27 %) and HDFC Standard Life of about 3.11%.

Below is the table that shows the market share of various players of the industry.

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The following companies have the rest of the market share of the insurance industry.

COMPANY NAME MARKET SHARE

LIC 79.30

ICICI PRUDENTIAL 5.63

BAJAJ ALLIANZ 3.27

HDFC STANDARD LIFE 3.11

BIRLA SUNLIFE 2.32

TATA AIG 1.45

SBI LIFE 1.24

MAX NEWYORK 0.90

AVIVA LIFE 0.82

ING VYSYA 0.66

OM KOTAK LIFE 0.54

AMP SANMAR 0.38

METLIFE 0.33

RELIANCE LIFE 0.05

The liberalization of the Indian insurance sector has opened new doors to private

competition and the new and improved insurance sector today promises several new job

opportunities. With private players now in the field, there will be innovative products,

better packaging, improved customer service, and, most importantly, greater employment

opportunities.

There are a number of options to choose from for a career in Insurance. Ideally an

insurance company will have openings in the following fields:

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ActuariesEvaluates the risk for companies to be used for strategic management decisions.

Actuaries use their analytical skills to predict the risk of writing insurance policies

through the use of mathematical, statistical and economic models.

UnderwritersInsurance underwriters review insurance applications and decide whether they should

be accepted or rejected based on the degree of risks involved in insuring the people or

objects of concern. In the life insurance business, an underwriter is expected to filter

the "bad or substandard lives".

Ag ents/Brokers :Insurance agents may work for one insurance company or as independent agents

selling for several companies. Insurance agents and brokers can find openings in the

health insurance sector, financial planning services, retirement planning counseling or

even provide other services, for e.g. sell mutual funds, annuities etc.

Surveyor/Loss Assessor:Surveyors are professionals who assess the loss or damage and serve as a link

between the insurer and the insured. They usually function only in non life business.

Their job is to assess the actual loss and avoid false claims.

Sales/Marketing:

And who can forget the guys who make and break a brand. They would be required in

a large number in order to promote the number of products that will be launched by

numerous companies in the insurance sector.

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CURRENT SCENARIO OF THE INDUSTRY

INSURANCE MARKET IN INDIA

India with about 200 million middle class household shows a huge untapped potential for

players in the insurance industry. Saturation of markets in many developed economies

has made the Indian market even more attractive for global insurance majors. The

insurance sector in India has come to a position of very high potential and

competitiveness in the market.

Innovative products and aggressive distribution have become the say of the day. Indians,

have always seen life insurance as a tax saving device, are now suddenly turning to the

private sector that are providing them new products and variety for their choice. Life

insurance industry is waiting for a big growth as many Indian and foreign companies are

waiting in the line for the green signal to start their operations. The Indian consumer

should be ready now because the market is going to give them an array of products,

different in price, features and benefits. How the customer is going to make his choice

will determine the future of the industry.

CUSTOMER SERVICE

Consumers remain the most important centre of the insurance sector. After the entry of

the foreign players the industry is seeing a lot of competition and thus improvement of

the customer service in the industry. Computerization of operations and updating of

technology has become imperative in the current scenario. Foreign players are bringing in

international best practices in service through use of latest technologies. The one time

monopoly of the LIC and its agents are now going through a through revision and

training programs to catch up with the other private players. Though lot is being done for

the increased customer service and adding technology to it but there is a long way to go

and various customer surveys indicate that the standards are still below customer

expectation levels.

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DISTRIBUTION CHANNELS

Till date insurance agents still remain the main source through which insurance products

are sold. The concept is very well established in the country like India but still the

increasing use of other sources is imperative. It therefore makes sense to look at well-

balanced, alternative channels of distribution.

LIC has already well established and have an extensive distribution channel and

presence. New players may find it expensive and time consuming to bring up a

distribution network to such standards. Therefore they are looking to the diverse areas of

distribution channel to have an advantage. At present the distribution channels that are

available in the market are:

• Direct selling/Retail

• Corporate agents

• Group selling

• Brokers and cooperative societies

• Bancassurance

DIRECT SELLING/RETAIL

Direct selling or retail business is carried out by Agents of the company. This is the

main distribution channel due to the complexity of most insurance products

(Endowment, Whole of Life, Unit Linked). This tends to be the focus of most companies

due to its past success as well as its ability to deliver the right advice. However, this

channel can be expensive and it is a time consuming sales process. An agent is the public

face of an Insurance company. Hence it is important that this face is always smiling and

presentable and the facts and figures at his/ her command are updated and correct.

An agent should be a pleasing personality with complete knowledge about the various

plans and solutions which the company has to offer and must also understand the

customer’s psychology well to deal in an efficient manner.

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BANCASSURANCE

Bancassurance is the distribution of insurance products through the bank's distribution

channel. It is a phenomenon wherein insurance products are offered through the

distribution channels of the banking services along with a complete range of banking and

investment products and services. To put it simply, Bancassurance, tries to exploit

synergies between both the insurance companies and banks.

Advantages to banks

Productivity of the employees increases.

By providing customers with both the services under one roof, they can

improve overall customer satisfaction resulting in higher customer retention

levels.

Increase in return on assets by building fee income through the sale of

insurance products.

Can leverage on face-to-face contacts and awareness about the financial

conditions of customers to sell insurance products.

Banks can cross sell insurance products e.g.: Term insurance products with

loans.

Advantages to insurers

Insurers can exploit the banks' wide network of branches for distribution of

products. The penetration of banks' branches into the rural areas can be utilized to

sell products in those areas.

Customer database like customers' financial standing, spending habits, investment

and purchase capability can be used to customize products and sell accordingly.

Since banks have already established relationship with customers, conversion

ratio of leads to sales is likely to be high. Further service aspect can also be

tackled easily.

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the promise to pay, backed by one of the oldest and most stably regulated financial

industry operating in the Indian sub-continent today

OPPORTUNITIES FOR INSURANCE COMPANIES In the now open sector on insurance, the following is what I feel will determine the

success of the company in particular and the industry in general:

1) A change in the attitude of the population

Indians have always been wary of employing their hard-earned money in a venture that

will pay them on their death. Insurance has always been used as a Tax saving tool. No

more, no less. It is upon the insurers to educate the people to secure/insure their future

against any unknown calamity and make a shield around their families and businesses.  

2) An open and transparent environment created under the IRDA .

The reason for this being on the top of our understanding is that when ever we have seen

any sector open up in India there are always grey areas and unsure policies. These are not

exactly what any player, be it Indian or foreign, looks for. It creates an air of uncertainty

in all the decision making process. Insurance as a sector requires players who are strong

financially and are willing to wait for returns.

A well-established distribution network.

To cater to the largest democracy in the world is by no means a cakewalk. Insurance

profits are directly related to number of insured and this is in turn related to the reach.

3) Trained professionals to build and sell the product.

It is said that the insurance agent is the best salesman in the world. He makes you pay,

regularly, an amount promising to pay back only on your death. Thus the players will

require an excellent sales team to sell their products in the now competitive environment. 

4) Encouragement of new and better products and letting the hackneyed

ones die out.

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This will itself ensure the market grows. And that every class/society gets a product that

best suits them.

SPECIAL PROVISIONS

The Income Tax Act and Life Insurance policies

Under Section 10(10D), any sum received under a Life Insurance policy (not

being a Key Man policy) is also exempt from taxation. But it is wise to remember

that Pensions received from Annuity plans are not exempted from Income Tax.

Section 80C provides a deduction up to Rs.1,00,000/-  to an individual assesses

for any amount paid as a premium. 

POLICYHOLDERS GRIEVANCES

Policyholders may have complaints against insurers either in respect of their policies or

their claims. As per Regulations for Protection of policyholders’ interests, 2002, every

insurer should have in place, a grievance redress system to address the complaints of

policyholders. The IRDA has a Grievance Redress Cell which plays a facilitative role by

taking up complaints against insurers with the respective companies for speedy

resolution. The IRDA however does not adjudicate on complaints.

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SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTH

1. Best returns with the added advantage of 100% life insurance coverage.

2. Good option for new investors into the market as all the money is invested by best

fund managers so with less knowledge also they can earn good returns.

3. Best commission charges paid to the agents which vary from 12% to 35%.which is

much higher as compared to mutual funds i.e.,only 2-2.5%.

WEAKNESS

1. HDFC SLIC could not able to match LIC in remote areas services.

2. Misleading facts given by life advisors about the returns of ULIPs.

3. Hidden charges taken by the companies.

4. Less Promotional Campaigns.

OPPORTUNITY

1. 80 percent of Indian population is still under insured. So there is a big opportunity for

insurance companies.

2. As the stock market can be under the mark any time so it can bring loss to the

investors but as in ULIPs there is proper mixture of debt securities and equity so the

loss is incurred during dark trading days also.

3. Unit-linked products are exempted from tax and they provide life insurance.

4. Increasing consumer awareness about Insurance and its use.

THREAT

1. Cannibalism within the industry by providing misleading figures to the investors.

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2. Govt.’s instability has a long term repercussions affecting company’s policies and its

growth.

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COMPANY’S PROFILE INTRODUCTIONHelping Indians experience the joy of home ownership.

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as

the largest residential mortgage finance institution in the country. The corporation has

had a series of share issues raising its capital to Rs. 119 crores. HDFC operates through

75 locations throughout the country with its Corporate Headquarters in Mumbai, India.

OBJECTIVES AND BACKGROUND

BackgroundHDFC was incorporated in 1977 with the primary objective of meeting a social need –

that of promoting home ownership by providing long-term finance to households for their

housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business ObjectivesThe primary objective of HDFC is to enhance residential housing stock in the country

through the provision of housing finance in a systematic and professional manner, and to

promote home ownership. Another objective is to increase the flow of resources to the

housing sector by integrating the housing finance sector with the overall domestic

financial markets..

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ORGANIZATION AND MANAGEMENTHDFC is a professionally managed organization with a board of directors consisting of

eminent persons who represent various fields including finance, taxation, construction

and urban policy & development. The board

primarily focuses on strategy formulation, policy and control, designed to deliver

increasing value to shareholders.

HDFC has a staff strength of 1029, which includes professionals from the fields of

finance, law, accountancy, engineering and marketing.

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SUBSIDIARY & ASSOCIATE COMPANIES

HDFC Bank

HDFC Mutual Fund

HDFC Standard Life

Intel net Global Services Ltd.

HDFC Chubb General Insurance Company Ltd.

HDFC Reality

Other Companies Co-Promoted by HDFC

HDFC Trustee Company Ltd.

HDFC Developers Ltd.

HDFC Venture Capital Ltd.

HDFC Ventures Trustee Company Ltd.

HDFC Investments Ltd.

HDFC Holdings Ltd.

Home Loan Services India Pvt. Ltd.

Credit Information Bureau (India) Ltd

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HDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance Company Limited was one of the first companies to be

granted license by the IRDA to operate in life insurance sector. Each of the JV player is

highly rated and been conferred with many awards. HDFC is rated 'AAA' by both

CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and

Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life

manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.

HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard

Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

THE PARTNERSHIP:

HDFC and Standard Life first came together for a possible joint venture, to enter the Life

Insurance market, in January 1995. It was clear from the outset that both companies

shared similar values and beliefs and a strong relationship quickly formed. In October

1995 the companies signed a 3 year joint venture agreement.

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Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the

relationship.

In October 1998, the joint venture agreement was renewed and additional resource made

available. Around this time Standard Life purchased 2% of Infrastructure Development

Finance Company Ltd. (IDFC). Standard Life also started to use the services of the

HDFC Treasury department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both

companies agreed the time was right to move the operation to the next level. Therefore,

in January 2000 an expert team from the UK joined a hand picked team from HDFC to

form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in

HDFC Bank.

COMPANY’S MISSION:

To be the top life insurance company in the market.

This not only means being the largest or the most productive company in the market, but a combination of several things like-

Customer service of the highest order

Value for money for customers

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

COMPANY’S VALUES:

SECURITY: Providing long term financial security to our policy holders will be

our constant endeavor.

TRUST: Company appreciates the trust placed by our policy holders in us.

INNOVATION: Recognizing the different needs of our customers, company will

be offering a range of innovative products to meet these needs. Company’s

mission is to be the best new life insurance company in India and these are the

values that will guide us in this.

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KEY MANAGEMENT PERSONNEL

Chairman

Mr. Deepak S. Parikh

Board Of Directors

Mr. K. M. Mistry

Ms. Renu S. Karnad

Mr. A. M. Crombie

Ms. Marcia D. Campbell

Mr. Norman Keith Skeoch

Mr. G. R. Divan

Mr. G. N. Bajpai

Mr. Ranjan Pant

Mr. Ravi Narain

Managing Director & CEO

Mr. D. M. Satwalekar

AUDIT COMMITTEE

Haribhakti & Company

Chartered Accountants

B.K. Khare & Co.

Chartered Accountants

Bankers

HDFC Bank Ltd.

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Union Bank of India

Indian Bank

The Saraswat Co-operative Bank Ltd.

Federal Bank

KNOWLEDGE MANAGEMENT

When Should One Go For Insurance?

Your insurance need will change as your life does, from starting to work to enjoying your

golden years and all the stages in between. Each one of these stages may pose a different

insurance need/cover for you. In this section, we have drawn up the basic life stages and

help you analyze various insurance needs accordingly.

34

Stage 1 : Young and Single

This is an important stage where one lays down the foundation of a successful life ahead.

Take advantage of the time and power of compounding to ensure that you build up your

dreams, so start saving early. Your needs:

oSave for a home and wedding

oTax Planning

oSave for Golden years

Stage 2 - Just Married

Marriage brings about a significant change. New dreams and new opportunities also

bring in additional responsibilities. While both of you look forward to a happy and secure

life , it is equally important to ensure that eventualities don’t come in the way of shaping

your dreams.

Your needs:

o Planning for home / securing your home loan

liability

o Save for vacation

o Save for your first child

35

Stage 3 - Proud Parents

Once you have children, your need for life insurance is even more. You need to protect

your family from an untoward incident. Ensure your protection umbrella takes into

account the future cost of securing your child’s dream. You will want life to go on for

your loved ones, and having enough life insurance is a way to help ensure that.

Your needs:

o Provide for children’s education

o Safeguarding family against loan liabilities

o Savings for post-retirement

Stage 4 - Planning for Retirement

While you are busy climbing the ladder of success today, it is important for you to take

time and plan for your life after retirement. Having an early start for retirement planning

can make a significant difference to your savings. Think about your golden years even

before you have reached them. The key is to think ahead and plan well using your time

and money.

Your needs:

o Provide for regular income post retirement

o Immediate Tax benefits

o Lead a secure, independent and comfortable

36

PRODUCT MIX

At HDFC Standard Life, there is a bouquet of insurance solutions to meet every need.

They cater to both, individuals as well as to companies looking to provide benefits to

their employees.

For individuals, they have a range of protection, investment, pension and savings plans

that assist and nurture dreams apart from providing protection. One can choose from a

range of products to suit one’s life-stage and needs.

For organizations they have customized solutions that range from Group Term Insurance,

Gratuity, Leave Encashment and Superannuation Products.

PRODUCTS FOR INDIVIDUALS

PROTECTION - You can protect your family against the loss of your income or the

burden of a loan in the event of your unfortunate demise, disability or sickness. These

plans offer valuable peace of mind at a small price.

Plans: Term Assurance Plan

Loan Cover Term Assurance Plan.

INVESTMENT - This includes a plan that is well suited to meet your long term

investment needs. We provide you with attractive long term returns through regular

bonuses.

Plan: Single Premium Whole Of Life

PENSION - Our Pension Plans help you secure your financial independence even after

retirement and live a relaxed retired life.

Plans: Personal Pension Plan

37

Unit Linked Pension

Unit Linked Pension Plus

SAVING - Our Savings Plans offer you flexible options to build savings for your future

needs such as buying a dream home or fulfilling your children’s immediate and future

needs.

Plans: Endowment Assurance Plan,

Unit Linked Endowment,

Unit Linked Endowment Plus,

Money Back Plan,

Children’s Plan,

Unit Linked Youngstar,

Unit Linked Youngstar Plus

GROUP PLANS

HDFC Standard Life has the most comprehensive list of products for progressive

employers who wish to provide the best and most innovative employee benefit solutions

to their employees. They offer different products for different needs of employers ranging

from term insurance plans for pure protection to voluntary plans such as superannuation

and leave encashment.

Plans: Group Term Insurance with Riders

Group Term Insurance with Profit-Share

Group Unit-Linked Plan

For Gratuity

For Defined Benefit Superannuation

For Defined Contribution Superannuation

Group Leave Encashment Plan

38

RURAL CUSTOMER - According to research findings, there is keenness among

rural customers to invest in savings cum protection plan with a term of five years,

especially, if the premium amount is low and affordable. Keeping this in view, HDFC

STD> LIFE has plans like:

Plans: Bima Bachat Yojana.

Super Bachat Yojana

DISTRIBUTION OFFICES

In addition to the corporate office at Mumbai, your Company had 169 offices in over 135

cities/towns in the country. It has a widespread network of Financial Consultants,

Corporate Agents and Brokers servicing customers in these cities and towns.

FINANCIAL CONSULTANTS

The number of licensed Financial Consultants appointed by your Company increased

from over 23,000 in the previous year to over 33,000 in the current year. During the year,

the Company continued its

39

CURRENT SALES- HDFC Standard Life

“HDFC STANDARD LIFE PACING AHEAD”

The Financial Express 15 th May 2006

“HDFC Standard Life has recorded a strong year-on-year growth of 112% for the period April-March

2005-06, in comparison to the same period 2004-05, with a new business first year premium of Rs 1,029

crore.

In terms of effective premium income (EPI), which gives a 10% value to a Single Premium policy and is an

internationally-accepted indicator of an insurance company’s performance, the EPI grew by 103% to Rs

887 cr from Rs 436 crore. The average premium also grew by 62% to Rs 27,500 in 2005-06 from Rs

17,000 in 2004-05.

During the year the company issued over 3,97,000 policies and has covered more than

5,80,000 lives”

Table Showcasing Financial Results:

Parameters

April-March

2006-07

(Rs. Cr)

April-March

2007-08

(Rs. Cr)

Growth

(%)

Total received premium 668.40 1532.21 129.23

    i.  New Business 486.15 1028.94 111.65

    ii. Renewal 182.25 503.27 176.14

Effective Premium Income

(Total) 436.08 887.30 103.47

Group Business Premium

(EPI) 49.40 135.15 173.58

40

FUTURE PLANS

HDFC has always been market-oriented and dynamic with respect to resource

mobilization as well as its lending program. This renders it more than capable to meet the

new challenges that have emerged. Over the years, HDFC has developed a vast client

base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this

loyal and satisfied client base for future growth. Internal systems have been developed to

be robust and agile, to take into account changes in the volatile external environment.

HDFC has developed a network of institutions through partnerships with some of the best

institutions in the world, for providing specialized financial services. Each institution is

being fine-tuned for a specific market, while offering the entire HDFC customer base the

highest standards of quality in product design, facilities and service.

41

42

1. TITLE

“AWARNESS OF FINANCIAL PLANNING IN EMERGING INDIAN MARKET”

a. TITLE JUSTIFICATION

A research design is one, which simplifies the framework of plan for the study and

adds itself in the quick collection and analysis of the data. It is a blue print that has

been filled in completing the study.

Some 100 respondents were taken randomly.

2. OBJECTIVES

OBJECTIVE ONE: To study the awareness of Financial Planning among the people and the importance of Insurance in today’s scenario.

OBJECTIVE TWO: To study Brand awareness of various private insurance companies and their different investment tools

OBJECTIVE THREE : Purpose of buying insurance and choosing right channel for buying life insurance

OBJECTIVE FOUR : Quality of service provided by agents and clients satisfaction level.

OBJECTIVE FIVE : Customer’s perception of improvements brought in by entry of Private Insurance companies.

43

3. SIGNIFICANCE OF STUDY

1) Significance to the industry

Competition is the basic element of a free enterprise system. The internet of both the

organization and the customer are better served when there are choices available in the

market. Competition encourages progress and product development. It forces

organizations to be more innovative and productive.

All the insurance companies are respective competitors of each other in there product

segments but they also face the other competition by the following other companies.

2) Significance for the researcher A questionnaire was prepared for the responses of the respondents. The questionnaire

was designed on the primary objections were of both open ended and closed ended type.

This help us a lot in knowing what is the customer’s perception about the product and

how to deal with them in the different situations

4. RESEARCH DESIGN

A) Probability/Non-Probability

The sampling design for this study was probability sampling. Under this design, the

method of sampling used was simple random sampling. In simple random sampling, a

simple random sample is a subset of individuals (a sample) chosen from a larger set (a

population). Each individual is chosen randomly and entirely by chance, such that each

individual has the same probability of being chosen at any stage during the sampling

process. This process and technique is known as Simple Random Sampling. Simple

random sampling is the simplest of the probability sampling techniques. It requires a

complete sampling frame, which may not be available or feasible to construct for large

populations. Even if a complete frame is available, more efficient approaches may be

possible if other useful information is available about the units in the population.

44

Advantages are that it is free of classification error, and it requires minimum advance

knowledge of the population. It best suits situations where not much information is

available about the population and data collection can be efficiently conducted on

randomly distributed items.

B) Exploratory :

Type of research carried out was EXPLORATORY in nature; the objective of such

research is to determine the approximate area where the drawback of the company lies

and also to identify the course of action to solve it. For this purpose the information

proved useful for giving right suggestion to the company.

5. SAMPLING METHODOLOGY

a) SAMPLING UNIT:

Interacting with number of customers during the activities performed, which included,

markets, cold calling, canopies, etc, did the research process. Sample Design consists of

Random Sampling.

b) SAMPLING TECHNIQUE:

Questionnaire

The questionnaire was formulated by keep in mind the following Points: -

Giving the respondents clear comprehension of the question.

Inducing the respondents to co-operate.

Giving instructions as to what is wanted.

Identifying the needs to be known.

45

c) SAMPLING AREA:

The primary data was collected through survey that was systematically carried in

East Delhi and NCR (i.e. NOIDA). The responses of the respondents were recorded in

the questionnaire prepared for them through questionnaires with oral interpretation.

d) SAMPLING SIZE :

The people who have been surveyed by the researcher were 100 i.e. the sampling size is 100

6. LIMITATIONS:

The following were the limitations that were there during the course of the study:

1. Limited time period.

2. Less number of respondents.

3. Biasness of the respondents.

4. Place for research is limited

5. Funds available for the research is limited.

46

47

1. From which age group you belongs to?

a) Below 30

b) 31 - 45

c) Above 45

Below 30

31 – 45

Above 45

2. Are you married or single?

a) Single

b) Married

Single 76%

Married 24%

48

3. What is your annual income?

a) Below 1.5 lakhs

b) 1.5 – 5 lakhs

c) Above 5 lakhs

Below 1.5 lakhs 40%

1.5 – 5 lakhs 25%

Above 5 lakhs 35%

4. Are you aware about Financial Planning ?

a) Yes

b) No

YES 98%

NO 72%

49

5. Are you Insured?

a) Yes

b) No

Yes 87%

NO 13%

6. Which is your most preferred option among these for investment?

a) Banks and post office

b) Share market

c) Insurance

d) Bonds

e) Mutual Fund

f) Real Estate

Banks and post office 21%

Share market 18%

Insurance 20%

Bonds 11%

Mutual Fund 21%

Real Estate 9%

50

7. How would you rate the following companies from the point of view of investments as

well as returns?

(1 - Excellent, 2 - Very Good, 3 - Good, 4 - Average)

a) ICICI Prudential

b) HDFC Standard Life

c) AVIVA Life Insurance

(A) ICICI Prudential

Excellent

Good

Average

POOR

EXCELLENT 30%

GOOD 20%

AVERAGE 35%

POOR 15%

51

(B) HDFC Standard Life

Excellent

Good

Average

POOR

EXCELLENT 35%

GOOD 25%

AVERAGE 25%

POOR 15%

(c) MAX New York Life

Excellent

Good

Average

POOR

EXCELLENT 35%

GOOD 25%

AVERAGE 25%

POOR 15%

52

8. According to you, which sector is most suitable to invest?

a) Only LIC

b) Private Companies

c) Both

Only LIC 30%

Private Companies 35%

Both 35%

9. Which distribution channel would you prefer to buy the insurance?

a) Known / Current Advisor

b) Group Insurance

c) Telesales / Unknown Advisor

d) Friends and Relatives

e) Bancassurance

Known / Current Advisor 11%

Group Insurance 89%

Telesales / Unknown Advisor

Friends and Relatives

Bancassurance

53

10. In which plan, would you like to invest your money?

a) Money Back

b) Endowment

c) Pension Plan

d) ULIPs

Money Back 34.29%

Endowment 20.23%

Pension Plan 21.28%

ULIPs 24.20%

11. What is your purpose to do investment or buying insurance?

a) Retirement Planning

b) Tax Benefit

c) Investment

d) Risk Cover

Retirement Planning 14%

Tax Benefit 23%

Investment 11%

Risk Cover 52%

54

12. If specifically you need to invest in insurance, than in which company would you like

to invest your finance?

a) LIC

b) ICICI Prudential

c) HDFC Standard Life

d) TATA AIG

e) Birla Sun Life

f) KOTAK Mahindra

g) SBI Life

h) AVIVA

i) MAX New York

j) METLIFE

k) ING Vyasya

LIC

ICICI Prudential

HDFC Standard life

TATA AIG

Birla Sun Life

KOTAK Mahindra

SBI Life

AVIVA

MAX New York

METLIFE

ING Vyasya

55

56

1. From which age group you belongs to?

a) Below 30b) 31 - 45c) Above 45

AGE DISTRIBUTION

AGE DISTRIBUTION(yrs.)

35%

41%

24%Below 30

31 - 45

Above 45

Highest number of Respondents (41%) from Age group 31 to 45 yrs.

35% respondents are of age below 30 yrs, small percentage of which is

unemployed.

57

2. Are you married or single?

a) Singleb) Married

MARITAL STATUS

MARITAL STATUS

19

4

16

37 24

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Below 30 31 - 45 Above 45

AGE(yrs)

SINGLE MARRIED

Total number of single respondents – 23

Total number of married respondents – 77

58

3. What is your annual income?

a) Below 1.5 lakhsb) 1.5 – 5 lakhsc) Above 5 lakhs

INCOME DISTRIBUTION

INCOME DISTRIBUTION(Annual in Rs.appx.)

16

13

5

1

7

12

12

10

0

6

12

6

<1.5 lacs

1.5 - 3 lacs

3 - 5 lacs

> 5 lacs

INC

OM

E

Below 30 31 - 45 Above 45

Highest, 16 respondents in income bracket below 1.5 lacs, which mainly

comprises of age group below 30 years.

Respondents of the age group 31-45 yrs, lie in all the income slabs.

Minimum, 6 respondents in income bracket of above 5 lacs, which are in age

group of above 45 years.

59

4. Are you aware about Financial Planning?

a) Yesb) No

ARE YOU AWARE ABOUT FINANCIAL PLANNING ?

98%

2%

0

10

20

30

40

50

60

70

80

90

100

NO

OF

PE

OP

LE

DO YOU KNOW WHAT IS FINANCIAL PLANNING ?

YES

NO

98% of the respondents were aware about Financial Planning.

60

5. Are you Insured?

a) Yes b) No

INSURED PERCENTAGE

ARE YOU INSURED?

87%

13%

YES

NO

87 % of respondents were insured on own life and on life of their family

members.

So we had 13 % of potential customers to approach.

61

6. Which is your most preferred option among these for investment?

a) Banks and post officeb) Share marketc) Insuranced) Bonds e) Mutual Fundf) Real Estate

INVESTMENT PREFERENCE

INVESTMENT PREFERENCE

11%18%

21%

9%

20%

21%

Banks & Postoffice

Share Market

Insurance

Bonds

Mutual Funds

Real Estate

21% respondents prefer banks and post office schemes as an investment tool

preference.

21% respondents prefer mutual funds for investment purpose.

Insurance ranks 2nd as an investment tool choice, which itself includes

various protection, saving and pension plans.

Govt. Bonds & securities are mostly preferred by people of higher age group

rather than young generation.

Property as an investment option is most lucrative choice. However it is

important to mention that majority of respondents are in age group of above

30 years and people with high income bracket prefers to invest in Real Estate.

62

7. How would you rate the following companies from the point of view of investments as well as returns?

(1 - Excellent, 2 - Very Good, 3 - Good, 4 - Average)

a) ICICI Prudentialb) HDFC Standard Lifec) AVIVA Life Insurance

(A) ICICI Prudential

Excellent

Very Good

Good

Average

30%

20%35%

15%

Excellent Good Average Poor

63

(B) HDFC Standard Life

Excellent

Very Good

Good

Average

35%

25%

25%

15%

Excellent Good Average Poor

64

(c) MAX New York Life

Excellent

Good

Average

Poor

35%

25%

25%

15%

Excellent Good Average Poor

65

8. According to you, which sector is most suitable to invest?

a) Only LICb) Private Companies c) Both

COMPANY PREFERENCE

COMPANY PREFERENCE(in %)

55% 30% 15%

0 20 40 60 80 100 120

1

ONLY LIC BOTH ONLY PVT. COs

55% of respondents have insurance cover provided by LIC only

15% of respondents have insurance cover provided by Private Cos. only

Whereas 30% have got insurance from both LIC and Private Companies.

Total number of LIC policies sums up to 85% and total number of Pvt.

Companies policies sold sums up to 45%.

Data provides that though LIC is still got a maximum market share but

Private Companies are making a fast move in the market.

66

9. Which distribution channel would you prefer to buy the insurance?

a) Known / Current Advisorb) Group Insurancec) Telesales / Unknown Advisord) Friends and Relativese) Bancassurance

DISTRIBUTION CHANNEL PREFERENCE

CHANNEL PREFERENCE

56 17 14 9 4

0 20 40 60 80 100 120

1

Known/Current Advisor Friends & Relatives

Group Insurance BanccassuranceTelesales/unknown Advisor

According to the data, known/current Advisors remains the 1st choice for buying

Insurance.

In retail also known Advisors are preferred over referrals.

Bancassurance is emerging as a popular option for buying life Insurance.

Group insurance is a channel which customers expect but it is not so popular

because only few employers have taken the initiative.

Buying insurance from a unknown person or getting a phone call is still not

preferred by most of the people

67

10. In which plan, would you like to invest your money?

a) Money Back b) Endowmentc) Pension Pland) ULIPs

TYPE OF PLAN BOUGHT

TYPE OF PLAN

26, 29%

20, 23%

24, 28%

17, 20% MONEY BACK

ENDOWMENT

PENSION PLAN

ULIPs

Money back Policies have been most popular and also the endowment plans.

As people today are more aware about financial planning, so people of the age

30 years have planned for their Retirement now.

ULIPs are fast gaining popularity as they provide investment

benefit with Insurance.

68

11. What is your purpose to do investment or buying insurance?

a) Retirement Planningb) Tax Benefitc) Investment

d) Risk Cover

PURPOSE OF BUYING INSURANCE

PURPOSE OF BUYING INSURANCE

52%

11%

23%

14%

0 10 20 30 40 50 60

Risk Cover

Investment

Tax Benefit

RetirementPlanning

Risk cover remains the most important purpose for buying insurance followed by

option as Tax saving tools.

Retirement Planning in a early period is also gaining the market share.

ULIPs are responsible for increasing popularity of insurance as an investment

tool

69

12. If specifically you need to invest in insurance, than in which company would you like to invest your finance?

a) LICb) ICICI Prudentialc) HDFC Standard Lifed) TATA AIGe) Birla Sun Lifef) KOTAK Mahindrag) SBI Lifeh) AVIVAi) MAX New Yorkj) METLIFEk) ING Vyasya

BRAND RECALL

BRAND RECALL

100

96

92

8286

72

64

75

71

6051

LIC

ICICI Prudential

HDFC Std Life

TATA AIG

BIRLA SUN LIFE

KOTAK MAHINDRA

SBI LIFE

AVIVA

MAX NEW YORK

METLIFE

INGVYSYA

100 % respondents mentioned first name to be LIC

Among private players, ICICI Prudential has the highest

Brand Recall i.e. 96%

HDFC Standard life has Brand Recall of 92%

70

71

RECOMMENDATIONS

1. In line with the existing competition in the Insurance Sector and with new

companies entering now and then, the cost of becoming a Financial Consultant

with the company should be reduced or waived off.

2. The HR Department should be more open to take advice and suggestions from the

NON-HR Personnel of the company in context with their experience of the

changing scenario of the market.

3. Monetary gains should be given to the Summer Trainees, so that they are

motivated to work more effectively & efficiently.

4. Communication within the company and with the outside world should be given

greater thrust.

5. The Personnel manager should make effort for group cohesiveness because

peoples’ commitment to their groups will be transient and changing.

Formulas for Success

Critical to expanding the client base is generating leads and maintaining

contacts with the prospects on a regular basis. Ideally one must plan 10-12

names and phone numbers of prospects to call on each day prior to 10.00

A.M

Obtain 5 qualified referred leads each day & Book 3 appointments each

day.

Qualified Referrals are people who have a financial need, have the disposal

income to pay the premiums and can been seen by you on a favourable basis.

72

73

CONCLUSION

The size of the market has grown and the size of the insurable population in India is

indeed vast and the existing player has managed to cover about one-fourth of it. The

opportunities before the players are therefore a plenty in terms of target audience. The

falling interest rates, the collapse of many small-time financial institutions, the scope for

entering related areas like banking and pensions in a bid for synergy and the promise of

e-commerce are some of the other opportunities knocking at the doors of the insurance

majors.

There is a probability of a spurt in employment opportunities. A number of web-sites are

coming up on insurance, a few financial magazines exclusively devoted to insurance and

also a few training institutes being set up hurriedly. Many of the universities and

management institutes have already started or are contemplating new courses in

insurance. Health insurance, which is still in its infancy, is also likely to get a major

boost, ultimately leading to improvement in the quality of medical treatment and facilities

in the country.

Life insurance has today become a mainstay of any market economy since it offers plenty

of scope for garnering large sums of money for long periods of time. A well-regulated

life insurance industry which moves with the times by offering its customers tailor-made

products to satisfy their financial needs is, therefore, essential if we desire to progress

towards a worry-free future.

Economics experts and various studies conducted across the globe envisage India and

China to rule the world in the 21st century. For over a century the United States has been

the largest economy in the world but major developments have taken place in the world

economy since then, leading to the shift of focus from the US and the rich countries of

Europe to the two Asian giants- India and China. According to some experts, the share of

the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of

India to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as

the third pole in the global economy after the US and China.

74

By 2025 the Indian economy is projected to be about 60 per cent the size of the US

economy. The transformation into a tri-polar economy will be complete by 2035, with the

Indian economy only a little smaller than the US economy but larger than that of Western

Europe. By 2035, India is likely to be a larger growth driver than the six largest countries

in the EU, though its impact will be a little over half that of the US. India, which is now

the fourth largest economy in terms of purchasing power parity, will overtake Japan and

become third major economic power within 10 years.

These are the opportunities that lie in India. Therefore insurance sector are coming to

cater the Indian market. Therefore the competition for the Indian companies has also

increased and the companies that want to stay in the competition, they have to come up

with new innovative practices in order to neutralize the competitive advantage taken by

insurance company.

My learning says that HDFC Standard Life Insurance Company, Products has

tremendous potential and strength in the insurance sector. HDFC Standard Life

Insurance Company just needs to create more global awareness through electronic and

print media. The customers’ perception about the company and for the products is really

good and the satisfaction level is very high.

However, the insurance sector companies if concentrates on the following factors will be

able to face the tough challenges:-

Technology

Product competition

Distribution Network

Publicity through various media

Attractive Schemes

Innovative Bonus Packages

Innovative marketing

75

Thus if the HDFC Standard Life Insurance Company will concentrate on all these

above factors then definitely the near future of the company would be very good. As the

insurance sector market is growing at a fast pace so the company is having a great

opportunity to maximize its wealth as well as to maximize its customer base by

producing quality and defect free products.

The training at HDFC Standard Life Insurance Company taught me that classroom

study is not and end but is a mean to achieve your goals. The stint at HDFC Standard

Life Insurance Company will go on a long way in enhancing my life as student as life is

full of learning one being student throughout it.

76

77

BIBLIOGRAPHY

BOOKS:

AUTHOR: C.R. KOTHARI

TITLE: RESEARCH METHODOLOGY

BOOKS:

AUTHOR: KOTLER PHILIP

TITLE: MARKETING

MANAGEMENT

Websites:www.bimaonline.comwww.hdfcinsurance.comwww.iciciprulife.comwww.maxnewyorklife.comwww.licindia.comwww.irda.comwww.rbi.org.inwww.irdaindia.orgwww.banknetindia.comwww.businessworldonline.com

a) Search Engines: www.google.com www.yahoo.com

Personal Interviews with some Chartered Accountants

Various Insurance companies Brochures/Manuals

78

79

QUESTIONNAIRE

11. From which age group you belongs to?

a) Below 30

b) 31 - 45

c) Above 45

2. Are you single or married?

a) Single

b) Married

3. What is your annual income ?

a) Below 1.5 lakhs

b) 1.5 – 5 lakhs

c) Above 5 lakhs

4. Are you aware about Financial Planning?

a) Yes

b) No

5. Are you Insured?

a) Yes

b) No

80

6. Which is your most preferred option among these for investment?

a) Banks and post office

b) Share market

c) Insurance

d) Bonds

e) Mutual Fund

f) Real Estate

7. How would you rate the following companies from the point of view of investments

as well as returns?

(1 - Excellent, 2 - Good, 3 - Average, 4 - Poor)

a) ICICI Prudential

b) HDFC Standard Life

c) MAX New York Life

8. According to you, which sector is most suitable to invest?

a) Only LIC

b) Private Companies

c) Both

9. Which distribution channel would you prefer to buy the insurance?

a) Known / Current Advisor

b) Group Insurance

c) Telesales / Unknown Advisor

d) Friends and Relatives

e) Bancassurance

81

10. In which plan, would you like to invest your money?

a) Money Back

b) Endowment

c) Pension Plan

d) ULIPs

11. What is your purpose to do investment or buying insurance?

a) Retirement Planning

b) Tax Benefit

c) Investment

d) Risk Cover

12. If specifically you need to invest in insurance, than in which company would you like

to invest your finance?

a) LIC

b) ICICI Prudential

c) HDFC Standard Life

d) TATA AIG

e) Birla Sun Life

f) KOTAK Mahindra

g) SBI Life

h) AVIVA

i) MAX New York

j) METLIFE

k) ING Vyasya

82